Top business leaders believe ESG is a necessity

As businesses adapt to consumer behaviours and mindsets, Environmental, Social, and Governance (ESG) practices are no longer a choice, but a necessity, said Kattiya Indaravijaya, CEO Kasikorn Bank (Thailand) at the Global Summit of Women in Bangkok.

Not to be confused with Corporate Social Responsibility (CSR), ESG provides a company with more benefits to boost profits and competitiveness, while CSR is used to build up a firm’s image and brand awareness, she said, reports The Nation. 

Adopting ESG practices may not be profitable at the start, but the move would reward businesses with accountability and sustainability, noted Sharon Dayoan, chair and CEO, KPMG RG Manabat & Co (Philippines).

Even though adopting ESG is not required by law, companies are still adopting such practices in response to the demands of the public, which are increasingly concerned on matters like climate change, sexual harassment, discrimination and local fair trade, said Irene Natividad, president of this year’s Global Summit of Women.

READ: What the growing focus in ESG issues means for CHROs

ESG practices help facilitate growth in the long run, attract talent, reduce costs, and forge a sense of trust amongst consumers, noted Dian Siswarini, CEO of Indonesia’s telecoms firm, PT XL Axiata at the event.